740.32112 RP/11–1345: Telegram

The Ambassador in Brazil (Berle) to the Secretary of State

3405. As result conversations with Drs. Santos Filho and Moreaux27 since mytel 338828 Embassy feels even more strongly it would be unwise to effect further deletions from Brazilian section Proclaimed List at this time, except 8 names liquidated enterprises listed that telegram. Both men, particularly Santos Filho, feel his substitution as Exchange Director was engineered by persons like Jayme Vasconcellos (who has been endeavoring to procure reversal measures against Stoltz firms) and other “fifth columnists”, and fear that latter may have seriously detrimental influence in future determination replacement program policies. Castro Menezes does not plan to take active part in replacement work and, while both Moreaux and Penna29 are scheduled to continue, none of three has same prestige and force as Santos Filho to resist attempts to reverse measures previously taken and to maintain firm position. Under these circumstances and making due allowances for possible undue pessimism on Santos Filho’s part, it seems much wiser to hold Proclaimed List for Brazil in present status pending further developments. Believe even deletion less important [Page 677] Japanese names would be tactically inadvisable and hence will not submit list of latter, as forecast by my 3388, unless Department so directs following receipt this message.

  1. Achilles Moreaux, Assistant to the Director of Exchange.
  2. November 9, 1945, not printed.
  3. Manoel Augusto Penna, Head of the Agenda Especial de Defesa Economica.